The South Shore's public transit could be under the management of the Tahoe Transportation District come Nov. 1, assuming certain conditions set by the district's board of directors are met.
A number of those conditions hinge on the bankruptcy proceedings regarding BlueGo's former management agency, the South Tahoe Area Transit Authority. The authority filed for Chapter 11 Bankruptcy Sept. 13.
STATA petitioned for bankruptcy protection, in part, due to an ongoing lawsuit brought against it by MV Transportation, its former operating contractor.
MV contends that STATA owes more than $2 million for previous service and improvements to the bus fleet.
The TTD wants to make sure that it isn't taking any "adverse actions" in the eyes of the court by taking over the management of the transit system, said Carl Hasty, District Manager.
The TTD can own and operate transportation systems and facilities that serve the region, according to the Congressional Compact that created the district.
A Tuesday court ruling ensured that STATA's bankruptcy can proceed in "an orderly fashion," said Jeffery Hartman, an attorney representing STATA.
This provides the TTD with the opportunity to ask the court about taking over BlueGo operations, Hasty said.
"STATA needs to remedy its past issues," Hasty said. "The future and the long term, that's we're focusing on. We don't want take any adverse actions. We'd rather be doing this in coordination with the settlement of these other issues. There are so many legalities involved here."
While the TTD board of directors voted Monday to lay the groundwork for the district to take over, the change in management will begin once agreements that provide reasonable funding are reached. The board is aiming for Nov. 1.
The City of South Lake Tahoe, Heavenly Mountain Resort, Lakeside Inn and Casino, MontBleu Resort Casino & Spa, Ridge Resorts have already committed funding to the TTD. Participation is pending from Harrah's and Harveys, as well as Douglas, El Dorado and Carson City counties. Grants from the Nevada Department of Transportation and Caltrans are also likely.
However, TTD is looking to take over the transportation system as soon as possible.
"I think there is some vulnerability in terms of how much money does STATA have available until the district can take over," Hasty said. "I don't know how long they can continue to operate BlueGo, I just know I don't want it to go on too much longer."